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How to file the VAT return in UAE: Detailed Step-By-Step Guide

Updated on: Nov 28th, 2024

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19 min read

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Businesses registered for VAT in the UAE must file VAT returns for each tax period as prescribed by the Federal Tax Authority (FTA) via the EMARATAX portal.  All sales, purchases, imports, exports, and VAT paid or collected should be accurately reported through the return. 

This blog provides a detailed step-by-step guide on how to file VAT return in UAE, including essential filing dates, required documents, and the penalties associated with VAT return filing UAE.

What is a VAT return in UAE?

A VAT return in the UAE is a formal document that summarizes all the sales and purchases made by a business during a specified tax period. The return provides detailed information about the Value Added Tax (VAT) collected on sales (output VAT), VAT paid on purchases (input VAT), and other relevant transactions, such as imports, exports, exempt supplies, and reverse charges.

Businesses that are registered for VAT are required to file a VAT return in the UAE with the Federal Tax Authority (FTA). The return must be submitted through the FTA's online portal, EMARATAX, and it is mandatory for businesses to file VAT returns at regular intervals, typically monthly or quarterly, depending on their turnover. This process is crucial for businesses to stay compliant with the VAT filing in the UAE requirements.

The VAT return document used in the UAE is known as VAT 201. It is divided into several sections that track VAT-related data, such as:

  • VAT on Sales and Outputs: This section includes details on the VAT collected from customers on taxable sales during the period.
  • VAT on Purchases and Inputs: This section tracks the VAT paid to suppliers on taxable purchases and expenses.
  • Net VAT Due: The difference between VAT collected (output VAT) and VAT paid (input VAT) is calculated. If output VAT exceeds input VAT, the business owes the FTA the difference. If input VAT exceeds output VAT, a refund can be claimed or carried forward to the next period.

Who must file a VAT return in UAE?

Any business or individual registered for VAT in the UAE is required to file VAT returns. This applies to businesses with an annual turnover exceeding AED 375,000, though businesses with turnovers between AED 187,500 and AED 375,000 can opt for voluntary registration. Additionally, businesses involved in exempt or zero-rated supplies may be exempt from registration and, therefore, from filing VAT returns in the UAE.

Important Filing Dates for VAT returns in UAE

Taxable businesses must file VAT returns within 28 days of the end of their tax period, which is a specific time frame used to calculate and pay the payable tax. The FTA defines the tax period, which can be monthly or quarterly, depending on the business’s turnover.

Quarterly VAT Filing Deadlines: 

For businesses with an annual turnover below AED 150 million

  • Q1 (January to March): Due by 28th April 2024
  • Q2 (April to June): Due by 28th July 2024
  • Q3 (July to September): Due by 28th October 2024
  • Q4 (October to December): Due by 28th January 2025

Monthly VAT Filing Deadlines:           

Businesses with an annual turnover exceeding AED 150 million are required to file monthly VAT returns. These returns are due by the 28th day of the month following the end of the tax period. For instance, the VAT return for May 2024 is due by June 28th, 2024.

The FTA can assign a different tax period for certain businesses based on specific criteria.

Details Required to File VAT 201 Return Form

The FTA portal is designed to accept returns only online. Hence, taxpayers must manually fill in the purchases, sales, input and output VAT etc.

The form VAT 201 is broadly categorised into seven sections as follows:

  1. Taxpayer details
  2. VAT return period
  3. VAT on sales and all other outputs
  4. VAT on expenses and all other inputs
  5. Net VAT due
  6. Additional reporting requirements
  7. Declaration and authorised signatory

Step-by-step process to file VAT return

Here’s the step-by-step process to file a VAT return in UAE:

Step 1: Log in to the EMARATAX portal using the registered username and password.

VAT 201 - 1- login

Step 2: Click on the navigation menu and follow the below path:

VAT → ‘View All’ under ‘My Filings’ → Click on ‘File’ for the return period

VAT 201 - 2 - My filings

Step 3: Select the check box confirming the instructions and guidelines and click the ‘Start’ button to proceed with the filing.

VAT 201 - 3 - Instructions and guidelines

Step 4: The window displays all the filing period details based on the selected VAT return.

VAT 201 - 4 - VAT return details

Step 5: You can use the offline template to fill in the data offline. Click on the download, fill in the data and upload the Excel file. Further, you can download the uploaded Excel to review the errors (if any) or clear the data if you want to upload a new Excel.

VAT 201 - 5 - Template

Step 6: You must enter the amount, VAT amount and adjustment in the respective boxes.

VAT 201 - 6 - VAT on sales summary

Step 7: Now, fill Box 1 with details of standard rate sales made to the corresponding emirate.

VAT 201 - 7 - Box 1 - standard rate sales

Step 8: The tax refunds given to tourists under the ‘Tourist Refund Scheme’ will be auto-populated to Box 2 from the ‘Planet Tax Free system’. Also, you can click on ‘View Details’ to check the auto-populated data.

VAT 201 - 8 - Box 2 - Tax refund

Step 9:  Fill in Box 3 with sales made under reverse charge provisions.

VAT 201 - 9 - Box 3 - reverse charge sales

Step 10: In Boxes 4 & 5, provide the zero-rated and exempt sales.

VAT 201 -10 - Box 4 _ 5 - Zero _ exempt sales

Step 11: Box 6 will be auto-filled with data received from Customs. You can click on ‘View Details’ to check the data. Further, if the import data is incomplete or incorrect, you can make adjustments using Box 7.

VAT 201 -11 - Box 6 _ 7 - Imports

Step 12: Box 8 represents the total of Box 1 to Box 7, i.e., total sales and tax liability for the return period.

VAT 201 -12 - Box 8 - Totals

Step 13: In Box 9, enter the amount, VAT amount and adjustment for the standard rated expenses.

VAT 201 -13 - Box 9 - Standard rate expenses

Step 14: Fill in the reverse charge purchases in Box 10.

VAT 201 -14 - Box 10 - reverse charge purchases

Step 15: Box 11 represents the total of Box 9 & 10, i.e., total inputs for the return period.

VAT 201 -15 - Box 11 - totals

Step 16: Box 12 & 13 represents the total output and input taxes for the return period. Further, Box 14 displays the tax payable or refundable for the return period.

VAT 201 -16 - Box 12 - Net VAT due

Step 17: Select ‘Yes’ under ‘Profit Margin Scheme’ if you’ve reported using the same; if not, select ‘No’. After that, click on ‘Save as Draft’ to save the submitted details and then click ‘Next Step’ to proceed.

VAT 201 -17 - Profit Margin Scheme

Step 18: This window displays the data submitted, and you can do a final review before submitting the return. Also, you can click on ‘Expand All/ Collapse All’ to do a section-wise review.

VAT 201 -18 - Review

Step 19: When you scroll down, the window shows the declaration details pre-populated from the VAT registration. Finally, click the checkbox and then the ‘Submit’ button to submit the VAT return.

VAT 201 -19 - Declaration

Step 20: The screen will display submission details once the return is successfully submitted. You can take a note of the reference number for future reference.

VAT 201 -20 - Submission

Step 21: After submission of the return, you must make the tax payment within the due date. Also, you can edit the submitted data till the due date. Further, you can download the VAT acknowledgement return copy by clicking the ‘Download’ button.

VAT 201 - 21 - Download

Please note that you need summary-level details of sales, purchases, expenses, input VAT and output VAT as per the VAT return format notified by the Federal Tax Authority (FTA).

Further, in a few boxes, you must report the sub-level details or declarations based on eligibility. For example, you should report

  • Sales at the Emirates level in the standard-rated sales box
  • Only those expenses or purchases are eligible to recover the input VAT

Documents Required for VAT Return Filing in UAE

To ensure accurate VAT return in UAE filing, businesses must gather the necessary documentation before submitting their VAT returns. Required documents include:

  • VAT Registration Certificate: This includes your Tax Registration Number (TRN), essential for filing.
  • Business License: Verifies the legitimacy of your business operations in the UAE.
  • Financial Records: These include bank statements, credit/debit notes, import/export documentation, and other financial records for reporting VAT.
  • Tax Invoices: Keep copies of all tax invoices issued to your customers or received from vendors.
  • Customs Documents: If your business imports or exports goods, customs documents are necessary to calculate VAT on imported goods.

Penalties Associated with VAT Returns in UAE

Failing to comply with VAT filing obligations in the UAE can result in significant penalties. Below is a breakdown of the key penalties associated with VAT filing UAE.

Violation

Penalty

Late Filing of VAT Return

AED 1,000 (first offense), AED 2,000 (repeat within 24 months)

Late VAT Payment

2% immediately, 4% after 7 days, 1% daily after 1 month (up to 300%)

Incorrect VAT Return Filing

AED 1,000 (first offense), AED 2,000 (repeat)

Incorrect VAT Return (Voluntary Disclosure)

50% / 30% / 5% of unpaid VAT (depending on timing)

Failure to Keep Financial Records

AED 10,000 (first offense), AED 50,000 (repeat)

Failure to Submit Documents in Arabic

AED 20,000

Failure to Facilitate FTA Audits

AED 20,000

Failure to Submit VAT Voluntary Disclosure

AED 3,000 (first time), AED 5,000 (repeat)

Conclusion

To comply with VAT regulations, businesses registered for VAT must submit VAT returns UAE through the Federal Tax Authority’s (FTA) EMARATAX portal. 

The filing process involves completing the VAT 201 form, which includes sections for VAT on sales, purchases, and VAT due. Businesses must gather essential documents, such as VAT registration certificates, financial records, and tax invoices, before submitting the return. Timely and accurate filing is crucial to ensure compliance and avoid penalties, such as fines for late filing, incorrect returns, or failure to maintain records. Businesses should also keep in mind the VAT filing deadlines in UAE to avoid late fees and other penalties.

Frequently Asked Questions

When are VAT returns due?

VAT returns are due 28 days after the end of the tax period:

  • Monthly: For businesses with annual turnover over AED 150 million.
  • Quarterly: For businesses with annual turnover below AED 150 million.
How to file a VAT return?

File VAT returns electronically through the EMARATAX portal by logging in, entering sales and purchase details, reviewing the VAT 201 form, and submitting it. Pay the VAT due by the filing deadline.

What information is required to file a VAT return?

Information needed includes:

  • VAT on Sales: Details of taxable sales and VAT collected.
  • VAT on Purchases: VAT paid on business expenses.
  • VAT Registration Number (TRN) and other business details.
  • Tax Invoices and Customs Documents for imports.
How to calculate VAT liability?

VAT liability = Output VAT (collected) - Input VAT (paid). If output VAT exceeds input VAT, pay the difference; if input VAT exceeds output VAT, claim a refund or carry it forward.

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